The Bretz TRIN -5 Indicator was developed by W.G. Bretz (Juncture Recognition in the Stock Market. 1972, Vantage Press), and it was dubbed the TRIN-5 by Jerry Favors who published an article on it (Technical Analusis of Stocks & Commodities Magazine; March 1992). Favors claims that it is a better top picker than other versions of TRIN.

The calculation is simply a 5-day moving sum (not a moving average) of TRIN*.

When the indicator reaches an extreme above 6.00, then turns down, a BUY Signal is generated. When the indicator reaches an extreme below 4.00, then turns up, a SELL Signal is generated. (Please note that the scale on our chart is reversed to make it more intuitive.)

*The basic daily TRIN calculation is as follows:

Advancing Stocks/Declining Stocks
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Advancing Volume/Declining Volume